Embattled Wall Street bank Goldman Sachs sought to calm uneasy shareholders today by promising a "rigorous self-examination" of its business practices and principles as directors faced a chorus of criticism over alleged ethical lapses that have tarnished the firm's reputation.

Under tight security with a significant police presence outside, investors gathered at Goldman's annual meeting in lower Manhattan to hear chief executive Lloyd Blankfein admit that the firm is going through a "difficult and disappointing" period as it faces a Congressional probe and $1bn fraud prosecution by the Securities and Exchange Commission.

"Questions have been raised that go to the heart of this institution's most fundamental value: how we treat our clients," said Blankfein, who pledged that a "comprehensive review" of Goldman's activities would be the top priority for the board, with a new business standards committee to vet adherence to ethical principles. "We understand that there is a disconnect between how we as a firm view ourselves and how the broader public perceives our role and activities in the market."

He spent more than two hours fielding questions largely from a small coterie of community activist organisations and faith-based funds. Veteran civil rights leader Jesse Jackson urged Goldman to address a separation between its prosperity and economic misery elsewhere.

"Wall Street is rising, citizens are sinking," said Jackson, a former Democratic presidential candidate. "States are sinking, schools are closing, there are record-breaking home foreclosures and student loan defaults."

Pointing to rising unemployment and increasing poverty, Jackson said Goldman had grown "leaves" of prosperity but that "the roots are dry and getting drier". He urged Blankfein to find a "pathway" to share the bank's profits, which reached $13.4bn last year, in a broader way.

Blankfein said he agreed: "There is no future for Goldman Sachs unless the economy as a whole grows."

There were harsher words from a regular attender at US annual meetings, Evelyn Davis, who branded Blankfein as "Lord Goldmine" and suggested that he should resign by Monday to retain "what little dignity" he has left.

Blankfein replied that he had "no current plan" to give up his job, despite calls for his departure from several well-known analysts.

Under questioning, Goldman revealed that it employs 259 lawyers, a rise of 17 on last year. Of its $184,400 of political donations, some 58% went to Democrats and 42% to Republicans.

Goldman's board faced several jibes over the appointment of a former Wal-Mart chief executive, Lee Scott, to its board, and the bank's controversial remuneration policy came under scrutiny. Employees made an average of $498,000 each last year as 35% of Goldman's revenue went into a $16bn bonus pool.

In one of the rockiest periods of its 141-year history, Goldman has seen its stock drop by 20% over the past month as legal woes mount over derivatives deals at the height of the global financial crisis.

The bank has been accused by the SEC of misleading clients over a $1bn mortgage deal in 2007 that led to an $840m loss suffered by Royal Bank of Scotland.

Reports have suggested that Goldman has begun talks with the SEC for a possible out-of-court settlement of the case. But the firm has been hit with a flurry of civil lawsuits from shareholders and Congress is threatening a crackdown on opaque trading in exotic financial instruments.